ASD kicks off budget roadshow

At St. Luke's Lutheran, Allentown board says tax may rise 6.1 mills.

Allentown School Board took its annual budget extravaganza on the road Tuesday night, but opening night at St. Luke's Lutheran Church was anything but entertaining.

It's possible that for the third consecutive year, the school tax will rise. The only question is how much.

As projected, a 6.1-mill tax increase is necessary to fill the $9.2 million gap between income and spending for 2004-05. That's about $245 a year more for the average household.

The projected 43.6 mills to be levied on property owners works out to a 27.8 percent increase in the property tax in three years.

School board President Jeff Glazier said the board will do everything it can to reduce expenses before the budget is adopted by June 30.

Tentative approval of the $153.4 million budget -- 10.24 percent higher than this year's -- is expected when the board meets at 7:30 p.m. Thursday.

Though he brought bad news, Glazier was graciously received by members of the 4C's Neighborhood Association, many of whom live around the church in the 400 block of N. Seventh -- one of the city's most economically depressed areas.

The group's questions centered on how the district could find more money to educate its 17,200 students.

Ernie Atiyeh, 4C's president, wondered if the board is working with the city to develop Queen City Airport. The board has been supportive, Glazier said. "Keep your fingers crossed," he added.

Allentown faces a worst-of-all-worlds financial situation. Expenses are up, revenue is flat, and the cash reserves have been wiped out by what Glazier called "exploding" medical insurance premiums.

Industrial development is non-existent. There's some residential development, but the cost of educating a child is higher than the taxes on most middle-income housing.

"What incentive is there for a family with a 5-year-old to buy a house in Allentown," asked Mike Adams, who fears continued flight of middle-class families to the suburbs.

The news was not all bad. Allentown has made enough academic progress to get off the state's list of worst performing school systems. It stands to lose $1.7 million in state subsidies for academic improvement. Superintendent Karen Angello has saved $850,000, and hopes to get the other $850,000 when state officials come to Allentown on June 9.

At the end of Glazier's "short course in school finance," the audience gave the teacher an "A." They applauded.

The Allentown School Board will hold other public hearings at:

East Side Youth Association, 8 p.m. Tuesday in the association building, E. Clair and Knapp streets.